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| Home > Retired Member - Life Events > Reaching Age 65 | ||||||
Retired Member - Reaching Age 65 |
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  Printable VersionDue to the co-ordination of contributions and benefits under the Public Service Pension Plan (PSPP) and the Canada Pension Plan (CPP) / Quebec Pension Plan (QPP), PSPP pension benefits are reduced automatically by a standard formula once you reach age 65, or immediately when you begin to draw disability benefits at any age. The following information is intended to help you understand the reduction in your PSPP pension in relation to the CPP/QPP co-ordination. |
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You may want to know... |
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Why are the contribution rates under the PSPP co-ordinated with those under the CPP/QPP? When will your PSPP pension be reduced? Does your PSPP reduction date change if you choose to receive your CPP/QPP benefit at an age other than 65? What is the formula for calculating the reduction in your PSPP pension? Is the indexing payable on your pension affected by the co-ordination with the CPP/QPP? Is the pension benefit payable to your survivors affected by the co-ordination with the CPP/QPP? |
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Why are the contribution rates under the PSPP co-ordinated with those under the CPP/QPP?When the CPP and the QPP were introduced on January 1, 1966, the federal government decided to co-ordinate the contributions and benefits under the PSPP with the contributions under the CPP/QPP, rather than stacking them. This means that you have contributed to the PSPP at a reduced rate for your pensionable service since January 1, 1966 to take into account that you were also contributing to the CPP/QPP. Your PSPP pension is therefore reduced to reflect the number of years during which you contributed at the reduced rate. For more information, consult The Co-ordination of the Public Service Pension Plan with the Canada Pension Plan or Quebec Pension Plan. |
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When will your PSPP pension be reduced?Your PSPP pension will be reduced on the first of the month following your 65th birthday, regardless of whether or not you are receiving benefits under the CPP/QPP. If you begin receiving a CPP/QPP disability pension before age 65, your PSPP pension will be reduced immediately. It is your responsibility to inform the Superannuation, Pension Transition and Client Services Sector (Superannuation Sector) immediately if you start to receive a disability benefit under the CPP/QPP, otherwise you will be required to repay any overpayments. |
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Does your PSPP reduction date change if you choose to receive your CPP/QPP benefit at an age other than 65?Receipt of early or deferred CPP/QPP benefits will not change the date on which your PSPP pension will be reduced, nor will it change the amount of your reduction. Your PSPP pension will still be reduced on the first of the month following your 65th birthday or on the date that you become entitled to a CPP/QPP disability pension. |
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What is the formula for calculating the reduction in your PSPP pension?The formula for calculating the reduction in your PSPP pension is as follows:
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Is the indexing payable on your pension affected by the co-ordination with the CPP/QPP?As the indexing payable on your PSPP pension is directly related to the amount of your basic pension, any reduction in your basic pension results in a corresponding reduction in the indexing payable. |
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Is the pension benefit payable to your survivors affected by the co-ordination with the CPP/QPP?Survivors' pensions are not subject to this reduction. A survivor benefit is normally equal to half of your basic pension entitlement, that is, half of your pension calculated before it is reduced. Your survivor can receive survivor benefits under the CPP/QPP and also receive a full survivor benefit under the PSPP. |
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| Last updated: 2007-10-11 | Important Notices |
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